Politics and updates on the state of the U.S. economy could take the spotlight during the first full week of March, with the President’s State of the Union address, congressional testimony from Federal Reserve Chair Jerome Powell, and Super Tuesday primary elections set to come.
Friday’s jobs report will offer an update on the employment situation in February, and comes after private sector payrolls and job openings reports earlier in the week. The week will also bring earnings reports from retailers Target (TGT), Costco (COST), and Ross Stores (ROST), along with tech earnings from CrowdStrike (CRWD) and Broadcom (AVGO), among others.
Capitol Hill Remarks From Fed Chair Powell, President Biden
Many will be watching Capitol Hill next week, with two days of congressional testimony from Fed Chair Jerome Powell, as well as President Joe Biden’s State of the Union address.
Powell will testify to a House of Representatives panel on Wednesday, followed on Thursday by an appearance before the Senate Banking Committee, part of the Fed’s annual report to Congress. Legislators are likely to press Powell about the likely path of inflation, the timing of interest rate cuts, and the health of the economy.
President Biden will address the economy in his closely-watched State of the Union address Thursday, where he will reportedly propose raising taxes for corporations and high earners, and press for lower prescription drug prices and health insurance rates. Biden’s speech is also expected to highlight projects spurred by the CHIPS and Inflation Reduction Act. Alabama Senator Katie Britt will deliver the Republican response. The address will come after voters in 16 states head to the polls earlier in the week for the Super Tuesday primary election, helping set the stage for the 2024 presidential, congressional, and gubernatorial races.
Jobs Report for February Comes After January Inflation Bump
After January’s inflation reports, all eyes will be on Friday’s payrolls report to see how many jobs U.S. employers added in February. Bureau of Labor Statistics data showed the economy added 353,000 jobs in January, double what forecasters were expecting, and continuing a hot streak for a strong labor market that some economists worry could also contribute to higher inflation. Ahead of Friday’s report, the ADP private payrolls employment report on Wednesday could give an early sense of how Friday’s national report could trend, though it isn’t always an indicator, as last January’s ADP report came in lower than expectations just days before the blowout Labor Department report. Wednesday will also bring the release of the latest job openings and labor turnover survey (JOLTS) report.
Earnings From Major Retailers and More
Retail and tech companies will be among some of the largest to report this week as earnings season winds down. Target, Ross Stores, and Nordstrom (JWN) will report on Tuesday. Abercrombie & Fitch (ANF) will follow on Wednesday, while Costco and Victoria’s Secret (VSCO) report Thursday.
Cybersecurity provider CrowdStrike will release its results on Tuesday after it raised its full-year guidance last quarter. Marvell Technology (MRVL), a maker of networking chips used in data centers, will report its quarterly earnings on Thursday after it projected that demand for its artificial intelligence (AI) products would accelerate its revenues in the second half of the year. Another chipmaker, Broadcom, reports Thursday.
Another report for investors to watch this week will come from Kroger (KR), as the grocery store chain’s executives could comment on issues related to its proposed acquisition of Albertsons and the Federal Trade Commission’s recent actions to block the merger.